Cost of end. Inv. And cost of goods sold under average cost
It's me again!
I have another question to the same problem. In case someone else responds, I'll post the problem again.
June 1 inv200
51000
June 12 purch.300
61800
June 23 purch. 500
73500
June 30 inv.
I need to compute the cost of the ending inventory and the cost of goods sold using the average cost method.
Will the results be higher or lower than the results under FIFO & LIFO? And why is the average unit cost not $6.00
Please explain how to get the answer and why it's that way.
Thanks in advance.